SACCOs on Aggressive Campaign to Promote Debit Card Usage

By Jackson OKOTH

Kenya’s SACCO industry has launched an intense campaign to promote the use of debit cards, or the SACCO link card, to provide them with a buffer in the event that the now most frequently used mobile phone Apps experience any technical hitches.

A SACCO Link card is a visa-branded debit card that allows members to access their FOSA account funds at ATMs, bank agents and merchant outlets, both locally and abroad.

This debit card is used for withdrawals, balance inquiries, purchases and bill payments, offering security and convenience to SACCO members to manage their finances without the need for cash.

Saccos have partnered with Cooperative Bank of Kenya and its banking switch to integrate the SACCOs back-end database with the VISA network. The card can be used at Coop Bank ATMs or other VISA branded ATMs worldwide.

“We have noticed that our members have shifted their habits to mobile cash. Members need to use the cards in the event of network failures, a buffer to enable access to other alternatives in the event that digital cash cannot be accessed,” said David Mategwa-Kenya National Police DT SACCO Board Chairman.

He added that while use of mobile banking is now the leading delivery channel, outpacing physical branches, cards present a suitable alternative.

In the ongoing marketing roadshow to promote Sacco Link, SACCOs are offering a cash back of KSh 500 for the first 10 members each day, who spend KSh 1000 and above on paying for shopping, meals, travel, hospital bills and other goods and services.

According to the Banking Customer Satisfaction Survey 2024, undertaken by Kenya Bankers Association(KBA) Card payments (online/point-of-sale) and cash deposit machines, both ranked at 3 in 2024, show relatively stable but lower usage compared to digital channels.

These channels saw moderate preference in 2023, with card payments at 7.1% and cash deposit machines at 2.77%, indicating some continued usage but less frequent engagement than mobile and online platforms.

Mobile banking and internet banking continue to dominate, reflecting customers’ shift to digital-first solutions. This is especially so for counties with limited branch access and urban areas where digital banking is already gaining traction.

According to the KBA Survey 2024, Mobile banking (55.47%) emerges as the top priority for improved accessibility, highlighting the central role mobile platforms play in customers’ financial management.

As mobile banking continues to grow in popularity, Internet/Online banking follows closely at 35.99%, as banks optimize web-based platforms to serve their customers. Other services like ATM services (31.23%) and payment processing (33.82%) also appear in the list.

A continued shift toward digital banking, with mobile banking (USSD/App) and internet/online banking maintaining their top positions.

This mirrors 2023, where mobile banking was the most preferred channel at 69.9%, followed by internet banking at 24.6%. Bank branches continue to be important, ranked third in 2024, reflecting sustained demand for in-person services, similar to 2023 where branches were also highly preferred but showed a slight decline.